Contracting for a company based in US remotely

[TheCyclingProgrammer]

There's loads of remote jobs around if you look in the right places. I don't think finding the work or contracting between a UK Ltd and US client will be an issue here.

The main issue you will find is getting the clients to agree to your own terms, under local jurisdiction. They will likely want you to agree to their terms under the jurisdiction of a favourable US state. Consequently the main cost to you will be obtaining legal advice and appropriate professional indemnity cover, so take this into account when determining your rate.

You may also need to submit a W8BEN-e form to avoid withholding taxes.

Don't be afraid to charge more.

[Manic]

How expensive are we talking about?

£1500 ish a year. Not a deal breaker but remember you'll need it ongoing after the work has finished.

Oh and FYI- Invoices were paid in US$ with 90 day terms.

[WordIsBond]

Hi,

I'm looking into contracting, there is a lot of remote work available for my area expertise (especially in US). Whilst I wouldn't want to move there - is it possible to set up my company in UK and work for a US based company whilst working from home remotely?

Thank you!

1. Yes, it is possible. Much of my work comes from US clients.
2. Unless your contract puts you firmly inside IR35, you probably don't have to worry about that. Normally it is working practices that drive it, but for a US contract, HMRC don't have the authority to force your client to talk to them, so investigating working practices probably isn't a problem. Get IPSE or QDOS for tax investigation cover but don't bother with tax liability cover for US client contracts. That savings helps cover the extra cost of PI insurance.
3. If the client wants you badly enough, you can insist on the contract being governed by UK law. I do. You said "there is a lot". That doesn't help if there are a lot of people who could do it, but if there are a shortage of resources, you can dictate terms.
4. If the contract is governed by UK law, the PI insurance isn't going to be excessively expensive.
5. In my experience, US clients tend to be cost-focused, and flexible on other matters. If the price is right, they'll be negotiable on other things. This may vary depending on the industry, of course.
6. One problem for you may be that if they are actually looking for someone to do it remotely, they are likely to be finding people in Asia or South America who are less expensive than you want to be. If they are looking for remote resources, they are probably looking for a lower price. If it is worth it to you to work at home and be able to mostly forget about IR35, you may find it worth it to give a relatively low price.
7. Do you have the self-discipline to actually work and be productive while working at home? If not, just forget it. You have to know yourself here.
8. There's no VAT on services exported to the US.